Scientific Games Corporation announces $1.2 billion debt note placement

American lottery and gaming machines innovator Scientific Games Corporation has announced that its Scientific Games International Incorporated subsidiary is set to place some $1.2 billion in senior unsecured notes up for grabs.

The Las Vegas-headquartered firm used an official Tuesday press release (pdf) to detail that the notes connected with this private bond placement, which are due to come due in 2028 and 2029, are to be combined with readily available cash to help it pay off a selection of 10% senior unsecured notes expiring in 2022.

Multiple obligations:

Scientific Games Corporation declared that proceeds from this placement are to also be utilized to fulfill the $244 million debt attached to a range of 6.25% senior subordinated notes payable next year and assuage any ‘accrued and unpaid interest thereon plus any related premiums’. The developer moreover proclaimed that a lesser portion of this income is to be set aside to help it satisfy ‘fees and costs’ as well as ‘related fees and expenses’ associated with this offering.

Read a statement from Scientific Games Corporation…

“The notes will be guaranteed on a senior basis by Scientific Games Corporation and certain of its subsidiaries and the notes will not be secured. The notes will not be registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.”

Recovering financials:

The news of this placement follows Scientific Games Corporation’s November 7 revelation that its overall third-quarter revenues had improved by slightly over 4.1% year-on-year to reach $855 million. The Nevada firm had explained that growth across every one of its core business segments with the notable exception of its gaming operations had seen it erase last year’s $352 million deficit to post a profit of approximately $18 million.